However, Australia is coming off two very poor years of wheat harvest and the country’s crop is still in the early growing

stages.

That, coupled with quality issues in Black Sea countries, has forced Iran to buy US wheat.

“Iran hasn’t bought wheat from the US since 1981, and of course we remember the political problems at that time with the hostages,” says Farm Progress market analyst Arlan Suderman. “But they are so desperate after a drought cut their crop down by a third this year, so they’ve purchased 43 million bushels of US hard red winter wheat over the last three or four weeks.”

According to US Department of Aagriculture, Iran may be in the world market to purchase 4-5 million tons of wheat this year, and the US is where high-quality wheat is currently available.

That could change in coming months, although Suderman says purchasing US wheat could continue.

“They would like to switch to Australia and Argentine supplies once they become available,” Suderman says.

“But if drought continues in those two countries, Iran may have to continue to buy US wheat as we go into the winter.”